Nigeria’s petroleum regulator has announced that fuel costs across the country are set to continue their downward trend as market reforms take effect.
Mr Saidu Mohammed, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), made this projection during a facility inspection at Aradel Holdings Plc in Ogbele community, Rivers State, on Sunday.
The anticipated price reductions for petrol, diesel and cooking gas stem from increasing supply levels, heightened market competition and growing private sector participation in Nigeria’s energy industry, Mohammed explained.
“Competition is already delivering results for consumers,” Mohammed said, pointing to petrol prices that have fallen from approximately N1,000 to N800 per litre. “As supply increases, prices naturally decline.”
The regulatory chief credited the removal of fuel subsidies with enabling proper market mechanisms that have improved efficiency throughout the downstream petroleum sector. He emphasized that ongoing competition, rather than government subsidies, would ensure Nigerians have access to adequate fuel supplies at reasonable costs.
Mohammed outlined Nigeria’s broader energy ambitions, which include exporting petroleum products to markets in Africa, Europe and the Americas. However, he stressed that meeting domestic consumption needs remains the priority before any large-scale export operations begin.
He noted that expanding refining capacity is essential, calling for additional refineries capable of producing diesel, fuel oil, naphtha, LPG and petrol. Mohammed acknowledged President Bola Tinubu’s commitment to free-market policies, describing subsidy removal as a pivotal decision that has attracted private investment across the oil and gas sector.
Regarding state-owned refineries, Mohammed said the NMDPRA is working with the Nigerian National Petroleum Company Limited to ensure crude oil and product deliveries to the Port Harcourt and Warri refinery reserves, which would stimulate local economies once loading operations resume.
During his three-day tour of facilities in Rivers State, Mohammed praised Nigerian companies for demonstrating the technical and financial capability to build and operate world-class energy infrastructure. He specifically highlighted Aradel Holdings, which has operated an 11,000-barrels-per-day refinery and supplied gas to Nigeria LNG for 13 years.
The company’s ongoing expansion will enable petrol loading from its facility by late 2027, Mohammed disclosed.
Aradel Managing Director Adegbite Falade confirmed the company’s plans to expand refining capacity, commercialize gas resources and eliminate routine gas flaring, positioning itself as part of Nigeria’s long-term energy solution.
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